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pushing for a hike. robert kaplan says the push for a rises strengthening. at follow me at twitter @rishaadtv. there is keenly awaited speech from janet yellen. we have singapore starting off. >> the story today looking across the asia-pacific is not surprising considering the mild pullback we saw this week. about. to really panic the 10th of 1%. it has also been a drying up of volume. you are really seeing a lot of outflow. a moderate about of our clothing pulled out of asian markets. we only have these two markets that have not seen this, that is taiwan and thailand. japan is just now to touching
its sessional low. mostly at a push up, when you're talking about fixed income. a lot of these stocks have been caught in tight trading rings. australia has been stuck between points.6 japan's talk about 3-4 basis points. when you're talking about china, i think this might be a little more -- the reason i bring this up is basically on, they been -- this is being seen more clearly as it trying to get the leverage out. they want to reduce the amount
of short-term debt that is being taken out of the market. this is something to watch following the drop yesterday. , nothing happening there. moderate dollar weakness right now. the dollar yen inflation data. without pushing stronger. today charts are nothing like today. prices are falling for a fifth straight month. inflation is still refusing to play ball. that is right. the numbers we saw today were somewhat weaker than expected, and far from the 2% inflation target that the bank of japan has set. , whichthe core numbers
saw fresh food down 0.5% from july. overall, numbers are down 0.4%. even when you strip out energy and food, you only get a slight rise. he far, even with three years of unprecedented easing by the bank of japan and 2% inflation goal. nowaad: what can we expect we have this policy meeting taking place? now an assessment of their efficacy of their management policy. what can we expect from the bank of japan? >> this puts more pressure, this inflation reading. just go up very slightly. exports are down again. there is a lot of pressure on japan. that iscy assessment going to occur at this meeting
will make it more likely that there is action. question assing the to whether there is much the stokef japan can do to inflation after three years of dramatic efforts to do so. we are still so far from the target. rishaad: it seems like they are flogging a dead horse. they're going to have a look now at what is happening at the fed. there is a much awaited speech from janet yellen at jackson hole. policy makers have been making the case for a rate hike ahead of the janet yellen speech at jackson hole. kaplanpresident robert says he thinks the case is strengthening. he spoke to bloomberg on the fed boss decision. -- the fed's decision. >> i wouldn't overreact to it. -- the fed raised rates
in december, and i don't think it had this effect. we telegraph that we would raise it, and at the same time, you had weakness in the currency, you had capital outflows, you had the circuit breakers that were put in in a way that aeated more panic, and we saw global financial tightening immediately that went on for several weeks. response to that, slowed down our future pace of hikes in order to help stabilize that situation. what we learn from that is that when you have turmoil in china, it can cause a quick tightening of global financial situations. they say higher rates are warranted with the u.s. nearing full employment, and inflation on the rise. subordinateellen's
said the fed is close to a hike. they're debating with other policymakers, who see no reason to rush. the formal theme will be the federal reserve's monetary goal kick. -- toolkit. will scrutinize any description of the economy in what will be her first public comments since june. playerd see a major new in italian telecoms. they could win european commission approval to create the country's largest wireless provider as soon as next week. they will likely hold a press conference to announce the deal's approval. the blessing for the merger would come three months after she vetoed hutchison's bid to merge the u.k. business.
and vivid, last year agreed on a 50-50 venture -- vimpelcom last year agreed on a 50-50 venture. rebounding after falling the most in a month. that is after having forecasted earnings dropped. the character -- the carrier says it could fall as much as 13% this fiscal year because of increasing competition. air new zealand posting a record profit of $338 million for the last fiscal year, operating revenue up 6.2%. it expects toys spend $1.5 billion over the next five years on its business. have more onill air new zealand later. we go to -- the chief executive will be joining us.
china's big five banks getting a hold on loans. the npo ratios held steady last quarter. what is the situation here? is boasting better than forecast rises in quarterly profit. without having to lower their ratios below the regulators man david threat -- bank of china in the first quarter had to do that. those banks report first-half results next wednesday. --o bank is out later today agbank. rise in profit in the second quarter. the number five pick in china saw a 1.3% rise in net income.
thistors looking at earnings season for the bank for any signs of worsening bad loans, or whether they are getting them under control. there npo's last quarter had stopped rising. they had risen every quarter since late 2013. 's has been sadly -- had risen sadly since 2013. industry averages just under 2%. many analysts believe those numbers are widely underreported in china. total nonperforming loans in china have been steadily rising, as china's economy has been slowing down. -- bocom says loans overdue for more than 90 days declined for the first time
since 2011. this does not mean we are out of the woods. it is incursion, but we are not out of the woods. the situation remains severe. the municipality of tengion. the latest npo data is encouraging, it is too early to see a tipping point. rishaad: they'll be looking to tap into the japanese market with an iphone app. the arguments for a rate hike at jackson hole. implications when it comes to the markets.
rishaad: more pressure on the bank of japan ahead of its monetary meeting. thanks for joining us. it's like flogging a dead horse get inflation up in japan. >> there is just no indication it is changing. we'll continue to see talk of changing the fiscal policy. , they will change their monetary policy. month, they might change their monetary policy. -- new takes a while for this to
sink in. it takes 18-24 months for the fiscal tack thing -- fiscal taxing to show up in the economy. we have to be a little patient. the market always seems to one another package month after month. it would not be responsible. doj'sd: what about the j's policy?he bo there could use helicopter money . it is not allowed lately, but there are ways around it. would it work? >> there are different ways to do it. it could be through tax credit, they could be through various mechanisms. that is probably not the way to go. ofy have reached the limit monetary policy fixes in the last couple of years. what they have done is
substantial. from now, it has to do with structural changes in the economy. it has to do with fiscal spending as well. the markets will look for structural changes, not quantitative easing. quantitative easing is about losing its firepower. the rates are so close to 0%. it is over. rishaad: in terms of what , therers are looking at are a few hours to go before janet yellen speaks in wyoming. she may well say something, but she may well contradict herself. it depends on if you're a half-full or half-empty kind of guy. >> i have been reflecting on this. what i find interesting is that the federal reserve is a federally -- is a privately owned body. it is not a publicly owned body their way -- the way other state banks are.
head of thethe reserve is appointed by the president and approved by congress. the banks what an upwardly sloping yield curve. the ability of banks to make money would be greatly enhanced. the ability of banks to make yield curve is extremely curtailed and difficult. these are emergency rate settings. the u.s. economy today is not in an emergency state. it is in a moderate growth state. it almost looks normal. rishaad: almost looks normal. i like you qualifying that. what does not look normal is american politics. what is gaining traction is protectionism. both sides have been vaunting their protectionist attributes. what you make of this? -- what do you make of this? >> we discussed this a couple
months ago. withhing we're seeing clients most frequently is that protectionism in the united states, or an abandonment of the pacific free-trade agreement as it is currently drafted -- and it is a draft -- would derail markets terribly, because it would sound like hp world -- a trade war. both candidates have expressed concerns about free trade. this is a worry to markets. we have to get through the election, and then have a little bit of certainty. the markets are assuming that in the lame-duck session of congress, the pacific free-trade agreement will pass in its draft form. i don't believe that is the case, but that is the market consensus. rishaad: great talking to you. have a great weekend. we would have a look at headlines now.
a second quarter loss of about $100 million in the u.s. has now turned a profit in the third quarter. this company is lost $4 billion in its seven-year history. it initially cover the relatively small area around a high-tech business park, and users will be hand-picked. it is run by a singapore startup, and in engineer will -- an engineer will ride in each car. is considering an ipo in hong kong. china'se saying restrictions on stock options are discouraging. allie pay was valued -- alipay
rishaad: apple is said to be planning an iphone features specifically for japan. it will include technology that will allow customers to make payments with a simple tap. a man on the ground has more on this. on the ground has more on this. it has significance. a network based on a technology developed by sony. it has grown substantially in that time.
japan started collecting data on the number of outputs from the amount of money that went to the system. 1.9 millionwn to outlets in japan where you can use these e-money cards. it is an exciting development new iphones can be kind ofle with this technology, and users will be able to use their iphones to tap into the subway system and to make payments in machines at convenience stores. kind of technology, and users will be able to use theira lot of retai. this is a big development for japan. rishaad: they are playing catch-up aren't they? it is a bit of catch-up. there is a slight difference in the technology. it connects by the internet,
whereas the silicate system actually stores the information on the chip. times are much much quicker. japan railway has some strict requirements on the speed of the system, and the distance at which it can touch the readers so that it can process through the volume of people that it needs to get to the transactions. rishaad: thank you for joining us. let's have a look at some of the other stories. the founder of the research firm said if it were later's -- defibrillators made by suzuki could be compromised.
many of the technology and medical technologies save the risk of such a hack is the remote -- is remote. they could be ticking time bombs. >> we think there is a good chance that it is about to lose half of its revenue fray. revenue for of its a period of time. today's of 40% profit margins are over with. there was too much anyway. -- is addressing that with investments that may not pay off in 5-10 to -- 5-10 years. let's take a look at what is happening with the guest shipper in asia -- with the biggest
shipper in asia. we're talking about cargo rates. costco lost 1.1 billion dollars in the first half of the -- cosco lost $1.1 billion last year. taking a look at tiffany's shares. earnings are coming ahead of estimates. worse.ared tiffany has successfully a -- successfully kept a lid on its spending. 8/10 of a percent lower.
dallas is robert kaplan told us earlier that the fed should raise rates patiently and gradually. bank -- ratio investigate -- investors managing their loans. it's too early to say the worst is over with. .hanghai opening fore are looking at volumes all these reasons. markets are open. very impressive as you look at the headline numbers. the -- the company itself does not really show optimism --
shout optimism. there is a supply coming back into the market. up with attorneys. --is the that no recovery is seen for the second half. we heard from the deputy governor speaking with bloomberg. when you talk about liquidity in -- putting this into , the 14 day part of the which sends a signal for no more rate hikes.
expect a cut this year. volumes are on the thinner sign of things -- side of things. half of 1%.are up out of manila, a 10th of 1%. we have two trading debuts across the chinese mainland. you have one in shanghai, the other engine jen. -- the other in shenzhen. 200 employees based out of china. both of these are seeing an absolute surge out of the gates. thanks.
economy andilizing session makers held back from additional stimulus. we have been talking about this all week. some of the nonofficial data is perhaps better than the official numbers. >> these tell us the other side of the story. there is always plenty to talk about in china. these are intimate indicators. this edged off a little bit in august. have another one that is looking like it has come back in august as well. this also a touchdown. edgedin a row -- also down. three a row showing a little more stable picture. rishaad: people of and urging the chinese government to get going with the reform of these
enterprises. put reform back on the -- this overalld story of stability in the economy. the big hard landing fears that people were talking about seem not to have materialized. policymakers have stabilize the economy. now they are reaching the limits. we have a lot of liquidity, but investment is stalling. monetary policy is now feeling property doubles. , -- theate investor private investment that is needed is not happening. maybe the government is coming back and saying this is where we need to open the barriers for private sectors so that these public sectors that have been barred will spur investments. what is going on with
the hong kong ray leaders -- tog kong regulators moving tighten their grip on the approval process. they say they're working together on the new regime. shift morey could power to the regulators. why they want -- >> there is room for improvement in the market here. you can listen to both sides. one of the reasons the regulator -- the business of shell companies, sometimes people leave businesses here just to attract business of across the channel.
that is what worries the regulators. the chief executive of the regulation says that is not enough. rishaad: are they going to succeed this time around? there is big discussion in hong kong about whether this is a good thing or a bad thing. rishaad: that is always a danger is that? will these reduce the number of ipos coming to hong kong? >> is beneficial -- it is beneficial for all of us. 60% chinese companies. there may be room for improvement. we will have to see how it works
giving a market a parting gift. trying to boost trading. entities with foreign exchange risk over-the-counter could hedge their exposure. upebook is taking its first to making money from -- its first step to making money from whatsapp. the messenger at this -- an ipo in considering hong kong. the latest details. we're talking about alipay. >> that is the main business.
our understanding is that the latest details on the ipo is that the company is leaning toward a listing in hong kong first, as opposed to doing it dual share. that is because the company is running into hurdles in the that the company is leaning toward a listing in hongmainlan. reagan leaders are becoming more cautious on terms of making -- regulators are becoming more cautious. they prohibit any company that -- shareholders more than all stock options have been tested. toy do have stock options incentivize employees. this is an area they'll have to deal with before the listing. they have not ruled out a listing in china. the point here is how
important is hong kong? they're using hong kong residents there experiment ground, testing the waters. hong kong is extremely important for the company. they're trying to test more lifestyle product and services off-line. winning that licenses quite crucial in the sense that previous -- the local hong kong version four will allow alipay you to use the digital wallet. china's big banks
china's biggest banks say bad loan ratios have hurt their first-half earnings. investigators are looking for signs of banks managing their bad loans. it is too early to say that the worst is over. i bank -- construction bank is unchanged. ratings of 18 major lenders. dot you make of this -- what you make of this? it's not getting any worse according to them. there is still a fine now --
fair amount of financing. in our analysis, we tend to go thend and focus more on .anks they have not changed much, because the internal generation has been week. access -- weak. in terms of raising fresh capital in the market, given the intense appetite, that is challenging. rishaad: when you look at a bank's balance sheet, the thing which strikes me is when is an npo actually in npo? is anybroad guidelines loan that is more than 90 days.
if we were to look at the financials, it is obvious that figure.e a much larger when it comes to npo recognition, i went to mention that a lot is not being reported. rishaad: let's get to your base case. this is the viability ratings. tell us about that. >> we see continued pressure on the viability ratings. that pressure is coming from quality and capital. whether onof credit, balance sheet or off-balance , we find is similar to 2008, the amount of credit is not necessarily generating the
amount of productivity. incrementalur dollar or credit affects economy. continues, we're going to end up with a bigger leverage problem. rishaad: it is interesting say that. that have seen examples of with the local government last year. more disposals or debt restructuring. enterprises or even seeingce -- we are enterprises or even insurance companies making more strategic invest. -- investments. researchexpect more
involving more resources one way or the other. apple is the most profitable company in the world. reflected --hink reflecteds not being in their popularity? they have to decide be on the balance sheet certain things like more -- rishaad: tell us about what is happening overall. is the baking industry cleaning up its act in china, or is it a long road before they do? >> there is still a lot of spend and pretend.
it is not for any significant monetary easing. rishaad: when you look at the sovereign rating, dealing with the banks as well -- do you all best you look at the banks as well. >> things will continue to trend. time.l continue for some in -- we warn that more easing could be credit negative. rishaad: last question -- shadow banking. we started talking a lot more about it. why is that the case? one of theways been
least $2 billion in china. lost in the second quarter of this year, they were asked -- they were spending super aggressively to gain market share. didi, its truce with walking away from china will cut down on the losses. that takes care of that in china, but what about here in the u.s.? >> a lot of us were most surprised that uber is losing about $100 million in the united states this corner -- this quarter after turning a profit last quarter. they are competing with lyft. boomer is insistent they will not let them get market share against them. -- uber is insistent they will not let lyft get market share
against them. sharere losing to gain and keep ground against their competitors. ,> could they run out of money even though they raise towards of cash? raised hordes of cash? thehey have $8 billion in bank, another $1 billion coming from didi in the form of an investment, about a $2 billion credit.redit -- line in they have a lot of capital. rishaad: singapore has charged three people with insider trading. case is facing more than 300 charges. what is this all about? it is a form of insider
trading. a broker trades a stock in his personal account to buy or sell the shares of a company. took placeedly between 2007-2014. .hey traded in about 100 stocks than 50o involved more accounts overseas. this is the first frontrunning case caught. in may.t case was back prosecutors charged two men with insider trading offenses. rishaad: is that true that it is part of singapore's image to protect itself was a financial center? >> it has to take stronger actions.
they are linked to the embattled state malaysian investment fund. 2013, almost $6 billion were wiped out in three days. singapore has said it will spare no effort here and it recently raise the max am fine on insider fine on-- the maximum insider trading. rishaad: the former head of world stock is saying that he will accept a final verdict on his six-year ban from the game. wrongdoing in authorizing a $2 million payment to the former fee for vice president.
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